U.S. markets close in 37 minutes
  • S&P 500

    3,753.79
    -29.49 (-0.78%)
     
  • Dow 30

    29,978.79
    -295.08 (-0.97%)
     
  • Nasdaq

    11,102.60
    -46.04 (-0.41%)
     
  • Russell 2000

    1,750.45
    -12.25 (-0.69%)
     
  • Crude Oil

    88.76
    +1.00 (+1.14%)
     
  • Gold

    1,722.00
    +1.20 (+0.07%)
     
  • Silver

    20.70
    +0.16 (+0.76%)
     
  • EUR/USD

    0.9798
    -0.0086 (-0.87%)
     
  • 10-Yr Bond

    3.8260
    +0.0670 (+1.78%)
     
  • GBP/USD

    1.1150
    -0.0172 (-1.52%)
     
  • USD/JPY

    145.0760
    +0.4660 (+0.32%)
     
  • BTC-USD

    20,033.03
    -220.17 (-1.09%)
     
  • CMC Crypto 200

    455.68
    -7.44 (-1.61%)
     
  • FTSE 100

    6,997.27
    -55.35 (-0.78%)
     
  • Nikkei 225

    27,311.30
    +190.80 (+0.70%)
     

This is what a home warranty covers

·3 min read
A home warranty can protect you and your family by covering the costs of common household repairs and appliance replacements. / Credit: Getty Images
A home warranty can protect you and your family by covering the costs of common household repairs and appliance replacements. / Credit: Getty Images

While lending institutions and banks mandate that homeowners have insurance in place to protect themselves and the lender, that's often where the coverage starts and ends. Putting in a home insurance claim for any damages or repairs should, hopefully, be a rare occurrence. Even then, there's no guarantee that the insurance in place will adequately cover the issues at hand.

In short: home insurance is the minimum requirement but it doesn't mean that the security and peace that a homeowner desires will be met.

This is where the consideration of a home warranty comes into play.

A home warranty can protect you and your family by covering the costs of common (and, sometimes, frequent) household repairs and appliance replacements. If you already don't have one, it's something every homeowner should contemplate getting.

Not sure about pricing or if you're in the market for a home warranty? Find out today with a few quick and easy steps.

But what does a home warranty cover and is it worth getting? Here's what homeowners should understand about this form of protection.

What does a home warranty cover?

Simply put: the warranty covers only what's in the agreement with the service provider. Exclusions specified in the deal are the responsibility of the homeowner. This is why it's important to read the fine print before assuming broader coverage than you may actually have in place.

Typically, however, home warranties can cover all or some of the following items:

DishwashersRefrigeratorsMicrowavesOvensGarage door openersAir conditionersFurnacesClothes washerClothes dryer

This list is not exhaustive and warranties can cover more or fewer items. It can also be set up to cover select items only.

While seemingly endless, the list of items a home warranty won't cover is also considerable. Typically home warranties won't cover:

Items/appliances that were already brokenItems/appliances that were initially installed improperlyStructural, plumbing and electrical adjustments needed to install new itemsCosmetic issuesModifications or adjustments made to new appliances

Do the appliances and equipment you need covered fall into the first category and not the second? Then you may be a candidate for a home warranty. Check out what kind of protection you're eligible for today.

Is a home warranty worth it?

Unfortunately, there is no definitive answer to this question. It all comes down to the homeowner's individual circumstances and preferences. There are, however, some baseline ways to determine if a home warranty is worthy.

Two of the most common ways to determine if a home warranty is worth it are as follows:

Your manufacturer warranty has expired. If one or more of your items have since passed their warranty expiration date then it may make sense to shore up coverage with a home warranty.Your appliances are old or aging. If your manufacturer warranty has expired then it's because your dishwasher, fridge or other appliance has aged out of the coverage zone. As is predictable, older appliances tend to break down more often than newer ones. This is when you may benefit from having a warranty.

Do a realistic check of your home and appliances to determine which items need protection (particularly your newer ones). If you want more safety and security than regular home insurance provides, a home warranty is a good place to start.

Want to learn more? Home warranty providers are ready to help you today.